What’s the Difference Between General and Professional Liability Insurance?
General liability (GL) addresses bodily injury, property damage, and specific personal or advertising injuries arising from your premises, operations, products, or marketing. Professional liability (PL), or errors and omissions, addresses financial loss resulting from negligent advice, design, or services. Many businesses need both because a single project can involve physical hazards and professional decisions.
General Liability in the Wild
GL responds to everyday hazards that come with foot traffic, tools, displays, and products. Here are five common hazard types and how they show up:
- Premises slip, trip, and fall: A customer hits a wet entryway, a loose mat, or an icy walkway and is injured. GL can respond to bodily injury claims. Many policies include a small “medical payments” limit to resolve minor incidents quickly.
- Product and completed-operations injury: An item you make or sell, or work you completed, later causes injury or damage. Think of a faulty component that overheats or a repair that fails and leads to water damage a month later.
- Damage to others’ property: Your employee drops a ladder onto a client’s car or cracks a lobby floor tile while moving equipment. GL addresses third-party property damage arising from your operations.
- Personal and advertising injury: Allegations of libel, slander, or inadvertent copyright use in an ad campaign. GL can respond to covered offenses related to your marketing.
- Fire liability (tenant’s damage): You lease space, and an accidental fire in your unit damages the landlord’s building. GL often includes a specific grant for this exposure, subject to separate limits and terms.
Retailers, contractors, manufacturers, venues, and service firms rely on GL to prevent day-to-day premises and product exposures from becoming balance-sheet shocks.
Professional Liability Decoded
PL focuses on whether your work meets a professional standard of care. Allegations include negligent design, misstatements, missed deadlines that cause client losses, or failure to deliver services as promised. Consultants, designers, accountants, healthcare and allied services, tech developers, and agencies regularly carry PL. Most PL is written on a claims-made basis: the policy in force when the claim is made responds, provided the act occurred after the retroactive date listed on your declarations. Occurrence PL exists in a few niches, but it’s uncommon. Keep an eye on the retro date when switching carriers; moving it forward can create a gap for older work that’s still on the hook.
Contract Clauses That Force Your Hand
Leases, master service agreements, and vendor contracts often require GL and PL with specific limits, additional insured and primary noncontributory status, and waivers of subrogation. Certificates of Insurance show proof, but endorsements are what actually grant those rights. Missing or incorrect endorsements can stall a project or violate a lease, so review requirements before binding coverage.
Exclusions, Deductibles, and Limits
GL doesn’t cover everything. Professional errors, employment practices, cyber incidents, and product recalls typically need dedicated policies. PL won’t cover bodily injury or property damage outside its insuring agreement, and it excludes known claims and acts that occurred before the retro date. Understand deductibles or self-insured retentions, defense-inside-limits provisions that erode limits as attorneys are paid, and aggregate limits that cap total annual payouts.
Match Coverage to the Risks You Really Have
We’ll map your operations to the right mix of GL and PL, then fine-tune limits, deductibles, retro dates, and contract endorsements so deals keep moving and claims are properly addressed. Our local New York agents can help you place business insurance that reflects how you actually work, not just how a checklist would have you work. Give us a call today at (585) 663-2004.
Hyundai & Kia Theft Settlement: What New York Vehicle Owners Need to Know
This is welcome news for Hyundai and Kia owners across New York State whose vehicles were stolen.
New York Attorney General Letitia James has secured a $9 million settlement with Hyundai and Kia after determining that certain vehicles were sold without functional anti-theft technology. These deficiencies made some models especially vulnerable to theft — a problem that became highly prevalent in our area.
How the Settlement Works
Out of the $9 million settlement, $4.5 million is set aside to reimburse vehicle owners whose Hyundai or Kia was stolen or damaged during a theft attempt.
However, reimbursements are not automatic.
Hyundai and Kia are expected to:
- Notify affected owners by mail
- Identify eligible vehicles by year, make, and model
- Open an official claims portal for submissions
What Owners Will Need to Submit
To qualify for reimbursement, owners will likely need:
- A police report documenting the theft
- Receipts or proof of out-of-pocket expenses
- Evidence of costs not covered by insurance
In most cases, this will involve insurance deductibles that the owner had to pay themselves.
Will Everyone Get Fully Reimbursed?
Not necessarily.
If the total number of claims exceeds the $4.5 million allocation, payments may be reduced proportionally. While not every owner may receive a full reimbursement, receiving something is still better than receiving nothing.
Does This Replace Auto Insurance?
No — and this is an important distinction.
Auto insurance still responds first to vehicle theft claims. This settlement is designed to help reimburse expenses insurance didn’t cover, such as deductibles or certain uncovered costs.
What Hyundai & Kia Owners Should Do Now
If your vehicle was stolen:
- Watch your mail for an official notice
- Gather police reports and receipts
- Be ready to submit your claim once the portal opens
This settlement is a positive step for owners impacted by a frustrating and costly problem, and it’s worth paying attention to if you were affected.
How to Prepare for a Winter Road Trip
Plan Your Route Like a Pro: Weather, Detours, and “Plan B”
Check official state DOT and highway apps for live road conditions, closures, and chain controls before you leave and at each fuel stop. Pair those with a forecast tool that shows hour-by-hour precipitation and wind along your route so you can shift departure by a few hours if a front is moving through.
Build a delay buffer: for snowbelt corridors, add 25–35 percent to your drive time and pre-identify safe stopovers every 60–90 miles where you could warm up, eat, and refuel. Save an offline map for the full route and a secondary route, then share a simple itinerary with a contact: vehicle description, plate number, planned stops, check-in windows, and your emergency contacts. Keep those numbers in your phone and in the glove box on paper in case the batteries or service fail.
Traction Action: Tires, Chains, and Pressure
Winter tires use softer rubber and denser tread that stay pliable below about 45° F; all-season compounds harden in the cold, which lengthens stopping distances. If you drive through mountain passes that require traction devices, match the chain or cable size to the exact tire code on your sidewall and do a practice install at home with gloves, a kneeling pad or tarp, and a headlamp. Confirm you have enough fender clearance after installation. Check tread depth; for winter driving, 6/32 inch or more is a safer target than the bare minimum of 2/32. Cold air shrinks, so tire pressure drops about one psi for every 10° F decrease in temperature. Check pressures “cold” and inflate to the driver-door placard, not the sidewall max. Don’t forget the spare and the jack points.
See and Be Seen: Visibility Gear
Use winter-blend washer fluid with a de-icer that is rated to the expected lows. It resists freezing in the reservoir and lines. Replace streaky wiper blades and consider winter blades with a protective boot that sheds ice. To check headlight aim, park 25 feet from a wall on level ground, measure from the ground to the center of each low beam, mark that height on the wall with tape, and confirm the beam cutoff is even and just below the marks. Carry reflective triangles; set one about 10 feet behind the vehicle, another around 100 feet, and a third farther back on high-speed roads to create a cone of visibility without the fire risk of flares.
The Cold Kit: Supplies That Save the Day
Pack a warm blanket or sleeping bag for each traveler, a folding shovel, and sand or non-clumping kitty litter for traction under drive wheels. Add booster cables or a jump pack, a compact air compressor, non-perishable snacks, water, and a headlamp with spare batteries. Include a phone power bank, a multi-tool, a basic first-aid kit, chemical hand warmers, and a bright knit hat so you’re visible if you exit the car. Tuck in a paper map for the ultimate offline backup if GPS and phones go dark.
Policy Pit Stop: Coverage You’ll Want
Review towing and roadside assistance before you go. Some policies limit mileage or exclude winching from a ditch. Verify whether rental reimbursement applies if repairs strand you mid-trip. Comprehensive covers hazards like hail, falling branches, animal strikes, and vandalism; many carriers offer separate glass coverage with a lower deductible for windshield repair. After a winter fender-bender, move to a safe spot, set out triangles, photograph damage and the road surface, exchange information, and contact your insurer or agent for next steps.
Map Your Coverage Before You Map Your Drive
A quick policy review ensures you’re covered from first flurry to final mile. Please message your local New York agent to confirm roadside, rental, and comprehensive protections fit your route and risk.
Hit by an Uninsured Driver as a Pedestrian in NY? Your Auto Policy May Still Protect You
Over the weekend, a Chili resident was struck by a vehicle while walking across the street. Thankfully, their injuries were reported as non-life-threatening.
What made this situation especially concerning was that the driver had three major strikes:
- The vehicle was not registered
- The vehicle was not insured
- The driver did not have a valid license
Despite every reason to flee, the driver stayed at the scene until police and emergency services arrived — and that deserves recognition.
But once the immediate crisis passes, a bigger question always comes up:
Who pays for the pedestrian’s medical bills and lost wages?
The Answer Surprises Most People
In New York State, if you are injured as a pedestrian by a motor vehicle, your own personal auto insurance policy may provide coverage — even though you weren’t driving.
How PIP Coverage Works for Pedestrians
New York is a no-fault state, which means Personal Injury Protection (PIP) is designed to pay for:
- Medical expenses
- Lost wages
- Certain out-of-pocket costs
If you carry an auto policy, your PIP coverage follows you, even when you’re walking. That means your policy can step in and pay benefits regardless of who caused the accident.
NY policies include $50,000 of basic PIP coverage.
What Happens If PIP Isn’t Enough?
Serious injuries can quickly exceed basic PIP limits. That’s where Supplemental Uninsured Motorist (SUM) coverage may come into play.
If the at-fault driver has no insurance, SUM coverage can provide an additional layer of protection after PIP is exhausted. In situations like this, the injured pedestrian may have two separate buckets of coverage under their own auto policy:
- PIP for immediate medical bills and lost wages
- SUM coverage for additional damages once PIP limits are reached
Why This Matters Before an Accident Happens
Many people assume auto insurance only protects them while driving. This situation highlights why that’s not true — and why coverage limits matter.
You don’t get to choose your accident, but you do get to choose your coverage.
Understanding your PIP limits and whether you carry SUM coverage can make a major difference when the unexpected happens.
If you’re not sure what protections you have, now is the time to review your policy — not after a claim.
Life Insurance Options for High-Risk Jobs
Insurers care less about your job title and more about what you actually do, where you do it, and how often. High-risk commonly includes construction trades (ironworkers, roofers, tower climbers), first responders, pilots and flight crew, commercial divers, offshore/oilfield roles, and certain utility and logging work. Underwriting flags focus on duties (heights, confined spaces, explosives, aircraft, underwater tasks), environment (remote sites, extreme weather, open water), and frequency (daily vs. occasional exposure). Expect either a higher premium class, a temporary rating, or a “flat extra,” which is an added charge per $1,000 of coverage for as long as the hazard exists.
Term vs. Whole vs. Guaranteed Issue
Term life is usually the most budget-friendly way to buy large amounts of coverage for a defined window: 10, 15, 20, 25, or 30 years. For hazardous occupations, term often delivers the best coverage-to-cost ratio, especially when the need is tied to a mortgage or kids at home. Whole life adds guaranteed cash value and level premiums for life; it’s pricier, but the guarantees and potential dividends can make sense if you want permanent coverage and forced savings.
Guaranteed-issue policies require no medical questions, but they cap face amounts and usually include a graded death benefit for the first two years (limited payout if death is from natural causes). If your job risk or health history makes traditional underwriting tough, simplified or guaranteed-issue can be a bridge. Just know you’re trading simplicity for a higher cost per dollar of coverage.
Riders That Matter When the Job Is Risky
Certain add-ons are worth a hard look:
- Accidental death benefit: this pays an extra amount if death is accidental; useful when exposure is elevated.
- Waiver of premium: this keeps the policy in force if you’re disabled under the rider’s definition.
- Accidental dismemberment or living benefits: this pays out for specific severe injuries or lets you access a portion of the benefit after a qualifying illness.
- Term riders for temporary spikes: this adds extra coverage during a multi-year project, then drops it when the risk (and income need) falls.
- Child or spouse riders: this efficiently add family coverage without separate policies.
Tell Your Story, Lower Your Rate
You can influence how insurers view your risk by documenting safety and professionalism. Have proof of employer safety programs, OSHA training, TWIC or HAZWOPER where relevant, dive logs or flight hours, PPE compliance, and written procedures for high-hazard tasks. Provide a clear job description that distinguishes routine duties from rare assignments. On the medical side, gather recent exams, medication lists, and any specialist notes. Clean, complete information reduces back-and-forth and helps underwriters consider a better class or a shorter duration for any flat extra.
Employer Group vs. Personal Policies
Group life at work is a great start, but it’s usually limited (often one to two times salary) and not portable if you change jobs or industries. Personal coverage follows you, lets you select higher limits, and gives you control over riders and term length. One smart strategy is to stack your employer plan for baseline protection and adds a personal policy sized to your long-term obligations. If your job’s hazards ebb and flow, consider laddering multiple-term policies with different lengths so you’re not overpaying once a major debt is gone.
Get Coverage Built for the Work You Actually Do
High-risk doesn’t mean uninsurable; it means you need the right carrier, the right structure, and the right documentation. Our agents at VanScoter Insurance Agency can help identify insurers comfortable with your risk profile, compare term and permanent options, and assemble personal insurance that respects both your budget and your bravery. Give us a call at (585) 663-2004.
4 Reasons to Purchase Business Interruption Insurance
The Need for Revenue Doesn’t Pause When You Can’t Do Business
Business interruption (BI) insurance replaces lost income when a covered peril forces you to slow or stop operations. Typical triggers include fire, wind, or water damage that makes your premises unsafe or unusable, or a direct physical loss to key equipment that halts production.
Property insurance pays to repair buildings and equipment; BI covers the lost revenue during downtime. Insurers generally measure the loss using your historical sales, normal operating trends, and seasonality. If your business peaks during the holidays or summer, that higher expected revenue is included in the calculation, which matters if a shutdown occurs during your busy season.
Keep the Lights On: Fixed Expenses Covered
Beyond lost net income, BI typically covers necessary continuing expenses you can’t easily turn off. Think of payroll, rent or mortgage, utilities, property taxes, and scheduled loan payments. Keeping payroll flowing preserves your trained team so you can restart quickly without the cost and delay of rehiring and retraining.
Some policies include an ordinary payroll limitation that caps coverage for non-key staff after a set number of days. Others allow for higher limits to keep everyone on board through a longer outage. Maintaining rent, taxes, and loan payments protects your credit standing and vendor relationships, which can be critical when you’re negotiating extended terms or expedited deliveries after a loss.
Comeback Faster: Extra Expense Coverage
Extra expense coverage pays reasonable costs you incur to shorten or mitigate the interruption. Examples include leasing a temporary location, renting substitute equipment, paying overtime for contractors, expediting shipping, or outsourcing portions of your workflow to a qualified vendor. Spending more up front can reduce overall claims by shortening downtime.
Many policies evaluate extra expenses on a “least cost” basis. If a $15,000 temporary fix prevents $75,000 of additional lost income, it’s usually a covered win. Track these costs separately and keep vendor quotes, invoices, and emails that show how each expense sped up your return to normal.
Supply Chain Snags and Civil Authority Closures
Not every disruption happens inside your four walls. Civil authority coverage may respond when a government order blocks access to your premises due to nearby property damage. Policies often include a short waiting period before coverage begins and a maximum duration for this extension. Contingent business interruption can address losses caused by direct physical damage to a scheduled supplier or major customer that stops the flow of materials or sales. To support these claims, expect to provide purchase orders, contracts, historical lead times, shipping records, and communications that document how the external event interrupted your revenue.
Sizing It Right: Limits, Waiting Periods, and Indemnity
Right-sizing BI starts with your finances. Calculate limits using gross earnings or business income formulas that reflect your margins, fixed costs, and realistic ramp-up time. Include seasonality and planned growth to avoid underinsurance during your busiest months. Most policies include a waiting period (commonly 24–72 hours) before coverage starts; choose a deductible and waiting period that fit your cash reserves.
The indemnity period is when the policy pays for covered losses, often up to 12, 18, or 24 months. For major rebuilds, permitting delays and equipment lead times can easily push past a year, so match the period to your real-world recovery timeline. Review coinsurance clauses, ordinary payroll limitations, and any exclusions that might trim a payout if limits are too low.
Build Resilience Into Your Balance Sheet
Interruption coverage turns a shutdown into a setback rather than a threat to survival. Our agents at VanScoter Insurance Agency can help you model limits, waiting periods, and extra expense options against real scenarios, then place business insurance designed to keep cash flow moving when the unexpected hits. Give us a call today at (585) 663-2004.
A Guide to Winterizing Your Home
Drafts, Doors, and Dollars
To winterize your home, start with the biggest leaks, such as attic hatches, exterior doors, baseboards, and windows. Add adhesive weatherstripping to door jambs and sweeps to the bottom edge; use silicone caulk around window and door casings, plumbing penetrations, and where siding meets the foundation. Do a simple smoke-pencil test: on a windy day, turn on kitchen/bath fans, then move an incense stick or smoke pencil along trim and outlets; smoke that wavers or is sucked inward flags a leak. Air sealing paired with insulation typically reduces heating costs by 10–15 percent, which is why it’s the first, highest-ROI winter task.
Heat Without the Headache: HVAC Tune-Ups
A pre-winter service should inspect burners and heat exchangers, test safeties, verify combustion and draft, clean the flame sensor, check refrigerant levels for heat pumps, and calibrate the thermostat. Replace filters every 1–3 months; most homes do best with MERV 8–11 for airflow and capture balance, while allergy households often choose MERV 11–13 if the system can handle it. For setback savings, drop the thermostat 7–10° F while you sleep or are away for 8 hours; many households see annual heating costs 10 percent lower without sacrificing comfort.
Pipes on Ice? Not Today.
Slip foam sleeves over exposed lines in basements, crawlspaces, and garages. Cap outdoor faucets and shut interior valves to drain the exterior lines. During a deep cold snap, run a pencil-thin trickle from a tap to keep water moving. Smart leak sensors should be installed beneath sinks, near the water heater, and behind the washer. If a line bursts, an automatic shut-off valve at the main (or a smart valve at key branches) can stop flow fast and limit damage.
Roof, Gutters, and the Great Ice Dam Escape
Clean gutters of leaves and grit, then test the flow by running a garden hose at the high end. Confirm each downspout discharges several feet from the foundation. Prevent ice dams by keeping the attic cold. Seal all attic air leaks around light fixtures and chases, ensure continuous soffit intake and ridge or gable exhaust, and avoid venting bath fans into the attic. Schedule a roof inspection annually or after hail; a pro will spot lifted shingles, failed flashing, and soft decking before snow finds them.
Safety First: Fire, Carbon Monoxide, and Generators
Place smoke alarms in every bedroom, outside sleeping areas, and on each level. Install carbon monoxide detectors on every level and near sleeping spaces. Test monthly and replace batteries on a set schedule, twice per year. Space heaters need a 3-foot buffer from anything that burns, must sit on a flat surface, and should plug directly into a wall outlet with tip-over and overheat protection. If using a portable generator, run it outdoors at least 20 feet from doors and windows, never in a garage, and power the house through a transfer switch.
Call Your Agent Before the Snow Flies
Winter-proofing lowers risk and may unlock discounts. Talk with your local New York agent about coverage tweaks for cold-weather hazards and home upgrades, before the first freeze turns minor issues into major claims. Give us a call at (585) 663-2004.
5 Reasons Why Life Insurance is Essential for Your Family’s Future
Life insurance is a valuable financial tool to help you protect your loved ones. It can provide peace of mind, stability, and long-term benefits that go far beyond a single payout. Whether you are starting a family or planning for retirement, the right life insurance policy can help ensure financial security for years to come. The following are five key reasons why life insurance is essential for your family’s future.
Financial Security
If an unexpected accident or debilitating illness or injury leads to incapacitation or death, life insurance can help your loved ones maintain their lifestyle and meet their financial obligations. The death benefit can help replace lost income, pay off debts, and cover expenses such as mortgage payments, childcare, and education. Without life insurance, your family could face serious financial hardship during one of life’s most difficult times. Having a policy in place provides assurance that they will have the resources they need to remain financially stable.
Final Expenses Coverage
Funerals, burials, and other end-of-life costs can be more expensive than many people realize. A traditional U.S. funeral with viewing and burial can range from $8,000 to $12,000. Life insurance can relieve your family of the financial burden of covering outstanding medical bills, funeral arrangements, and burial or cremation costs. This coverage allows your loved ones to focus on healing and remembrance, rather than the financial stress of paying for final expenses. Even a modest policy can make a meaningful difference.
Cash Value
Permanent whole life or universal life insurance includes a cash value component that grows over time and acts as a savings account built into your policy. Cash value accumulates tax deferred and can be accessed through loans or withdrawals while you are living. It can serve as an additional source of funds for emergencies, education expenses, or retirement. Long-term growth potential makes permanent life insurance an attractive option if you are seeking protection and financial flexibility.
Chronic or Terminal Illness Coverage
Living benefits included in many life insurance policies provide coverage if you are diagnosed with a chronic or terminal illness. (In this context, chronic illness is a medical condition that prevents you from performing basic daily activities without assistance for an extended period.) These benefits allow you to access a portion of your death benefit early to cover medical treatments, long-term care, and other personal expenses. They can help you maintain quality of life and reduce stress during a serious health challenge.
Tax-Free Payout
Death benefits are typically paid out to beneficiaries free of federal income tax. This is one of the most powerful advantages of life insurance. It allows your loved ones to receive the full amount of the policy, with no reduction for taxes. This provides financial liquidity and the ability to manage expenses, preserve assets, or invest without the additional financial burden.
Securing Your Family’s Future
More than a policy, life insurance is a promise to protect the ones who matter most. It can provide financial security, offer long-term savings and tax advantages, and play a vital role in your family’s financial plan. Review your coverage with our trusted agent at (585) 663-2004 to ensure your policy fits your current needs and adapts as your life changes.
Loss of Rental Income Coverage: What Every Landlord Needs to Know
If you own rental property, you’ve likely considered how to protect your investment from damage. But have you thought about what happens to your rental income if that property becomes uninhabitable due to a covered loss like a fire or water damage? That’s where Loss of Rental Income coverage comes in — and it’s a critical piece of your landlord insurance policy.
What Is Loss of Rental Income Coverage?
Loss of Rental Income (also called Fair Rental Value coverage) is designed to reimburse you for lost rental income if your property becomes unlivable due to a covered peril. This means that if damage from something like a fire, storm, or burst pipe forces your tenants to vacate, your policy can step in to cover the income you would have collected during the repair period.
It’s important to note that this coverage does not apply if rent prices in your area decrease due to market conditions. It only kicks in when your property suffers physical damage that makes it legally and practically uninhabitable.
Why It Matters
Imagine this: a kitchen fire causes extensive smoke and structural damage in your rental unit. Your tenant has to move out for three months while repairs are underway. During this time, you can’t legally collect rent, but you still have a mortgage, property taxes, and possibly HOA fees to pay. Without Loss of Rental Income coverage, you’re absorbing that financial hit out of pocket.
With the right coverage in place, your insurance policy can reimburse you for the lost rent during the time it takes to restore the property to a livable condition.
How Much Coverage Do You Need?
Many landlord insurance policies include Loss of Rental Income coverage by default, but the amount of coverage can vary. Here are a few things to keep in mind:
- Coverage Limits: Ideally, your coverage should reflect at least 12 months of rental income for the property. This ensures you have enough protection in case of a lengthy repair timeline.
- Actual Loss Sustained: Some policies offer coverage based on “actual loss sustained,” which means they’ll cover your actual rental income loss for a set time period, usually up to 12 months.
- Extended Loss of Income Coverage: Repairs may be finished, but you might not have a new tenant lined up immediately. Some policies offer extended coverage that continues reimbursing you for 30-60 days after repairs while you secure a new tenant.
Policy Review Tip
Not all policies are created equal. Some insurers may offer basic coverage limits or exclude extended loss coverage unless you specifically request it. It’s a good idea to review your policy with an experienced agent who understands the local rental market and can recommend the right coverage for your situation.
Final Thoughts
Loss of Rental Income coverage isn’t just a nice-to-have for landlords — it’s a financial safety net that can keep your investment property viable even when the unexpected happens. If you haven’t reviewed this part of your landlord insurance policy recently, now is the perfect time.
Need help understanding your coverage or want to compare landlord insurance options? Contact us today. We’re here to help protect your property and your peace of mind.
Why the Rochester Water-Main Break Isn’t Covered by Homeowners Insurance
When a major water-main break flooded 10 homes in the City of Rochester last week, most residents assumed they could turn to their homeowners insurance for help. After all, the damage wasn’t caused by a storm, a hurricane, or a river overflowing — it was a municipal incident. But as the follow-up news coverage revealed, many homeowners are now discovering the harsh truth: this type of flooding isn’t covered by a standard homeowners insurance policy.
Here’s what happened, why these claims are being denied, and what homeowners can do to protect themselves going forward.
Why This Event Is Still Considered a “Flood”
It might surprise people to learn that flooding doesn’t need to come from heavy rainfall or overflowing waterways. Under FEMA’s definition — which the insurance industry follows — a flood is any event where surface-level water affects two or more adjacent properties.
That means this Rochester incident, though caused by a man-made break in a water main, still meets the definition of a flood.
And that matters, because flood damage is excluded from all standard homeowners insurance policies unless the homeowner purchased a separate flood insurance policy.
Why These Homes Didn’t Have Flood Insurance
Most of the affected homes are not located in a high-risk flood zone, which means mortgage companies don’t require flood insurance as a lending condition. Because of that, most residents understandably never purchased it.
Unfortunately, that leaves them without coverage for the damage caused by this water-main break — even though it wasn’t a natural disaster.
Is Anything Covered? Possibly — If Water Came Through a Drain
Some homeowners may have experienced water entering the basement through a floor drain. In these cases, there could be coverage, but only for one specific scenario: sewer or drain backup.
However, there are two major limitations:
- You must have this coverage added to your policy. Not every homeowner does.
- You must have enough of it. Many policies only include $5,000 of sewer & drain backup coverage, which is nowhere near enough when the damage includes mechanical equipment or major cleanup.
News reports noted that several homeowners lost their furnaces due to the flooding. A new furnace can easily cost several thousand dollars — more than what many backup endorsements cover.
Real-World Lesson: Coverage Gaps Don’t Show Up Until a Loss Happens
Events like this highlight an important reality:
Just because your home isn’t in a high-risk flood zone doesn’t mean you’re safe from a flooding event.
And just because “water came into the house” doesn’t mean the policy will respond.
A simple policy review can help identify gaps in:
- Flood insurance
- Sewer & drain backup coverage
- Adequate coverage limits
- Protection for major equipment like furnaces, water heaters, and electrical systems
Floods — natural or man-made — are becoming increasingly common, and understanding your coverage before an event happens is the best way to avoid expensive surprises.
Final Thoughts
The residents affected by the Rochester water-main break are dealing with a situation none of them expected — and one that most believed their homeowners insurance would cover. Unfortunately, the fine print says otherwise.
Take this as a reminder to review your insurance policy, understand your exclusions, and make sure you have the right endorsements in place. A few minutes of preparation today can prevent major financial hardship tomorrow.
